Airbnb becomes lightning rod of bad press

airbnb

Screenshot of Airbnb’s website homepage

INTERNATIONAL news media have descended upon Airbnb this week as the largest short-term accommodations rental company in the world contends with mounting accusations of racial discrimination, pending regulatory impasse and a legal suit.

As the sharing economy platform continues to grow globally, segments of the travel community have begun to take issue with the way its business is being conducted. Most recently, Airbnb was forced to take action to address a public outcry of racial discrimination levied against them.

It first started when US citizen Gregory Selden sued the San Francisco-based company after a host supposedly rejected his reservation request because he is black. After futile attempts to address his frustrations with an Airbnb employee, the man then aired his complaints on social media with a hashtag #AirbnbWhileBlack, which has now become viral.

Selden’s case is one of many in recent months. Besides members of the public, government officials and even a Harvard Business School research have pointed out how sharing economy providers like Airbnb have allowed racial discrimination to fester unchecked.

While racist behaviours were conducted by third-party hosts, arguments have pointed out that Airbnb should still be obligated for the treatment of guests, especially since the platform holds vetting powers and the authority to ban users.

Airbnb is not resting on its laurels this time however, with a meeting set to be held today in Washington D.C. to address these allegations of racism. Its CEO Brian Chesky had also recently voiced his concerns, saying he hopes to find a solution, whether by a redesign of the website or via technology.

Meanwhile, other problems have beset the company, such as a lawsuit filed this week by a charitable foundation representing the legacy of celebrity chef Julia Child.

The Julia Child Foundation for Gastronomy and the Culinary Arts is seeking redress after Airbnb used the celebrity’s name without consent for commercial purposes. Even after the non-profit told Airbnb that the Julia Child endorsement cannot be used, the company went ahead to run a contest online promoting how participants can possibly win a free stay at the celebrity’s former home.

Airbnb’s problems are, of course, not isolated to the company and are tied to the sharing economy at large, which is facing a gamut of policy issues as governments figure out how best to regulate the emerging industry.

Over in Asia, Airbnb is also fighting battles with associations and local tour operators for various issues, including the legality of their operations and growing concerns over safetyand security.

In Thailand, where the private home rental market is prevalent, agents are also lamenting over the inconveniences posed by not having a central accommodations operator to contact in cases of emergency.

Airbnb was contacted for comment but did not respond as of press time.

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